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LabCorp (LH) Gains As Market Dips: What You Should Know

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LabCorp (LH - Free Report) closed at $264.88 in the latest trading session, marking a +0.24% move from the prior day. This move outpaced the S&P 500's daily loss of 0.97%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.49%.

Coming into today, shares of the medical laboratory operator had gained 1.71% in the past month. In that same time, the Medical sector gained 4.66%, while the S&P 500 gained 4.71%.

Investors will be hoping for strength from LabCorp as it approaches its next earnings release, which is expected to be April 28, 2022. In that report, analysts expect LabCorp to post earnings of $5.87 per share. This would mark a year-over-year decline of 33.22%. Meanwhile, our latest consensus estimate is calling for revenue of $4.06 billion, down 2.48% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.38 per share and revenue of $15.42 billion. These totals would mark changes of -32.05% and -4.37%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for LabCorp. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.8% lower. LabCorp is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, LabCorp is currently trading at a Forward P/E ratio of 13.63. This valuation marks a discount compared to its industry's average Forward P/E of 20.39.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow LH in the coming trading sessions, be sure to utilize Zacks.com.


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